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Credo Growth Rates
| Metric | Q1 26 | Q1 25 | YoY |
|---|---|---|---|
| Revenue | $223.10M | $59.71M | 273.61% |
| Gross Profit | $150.37M | $37.28M | 303.32% |
| Operating Income | $60.74M | $-14.45M | 520.33% |
| Net Income | $63.40M | $-9.54M | 764.56% |
| Cash And Equivalents | $479.60M | $103.90M | 361.60% |
| Total Assets | $905.17M | $644.87M | 40.37% |
| Total Liabilities | $123.79M | $91.76M | 34.91% |
| Shareholders Equity | $781.38M | $553.10M | 41.27% |
Shares Are Now Up 9%
As of 4:23 p.m. ET, Credo shares are up 9.2% after hours.
The stock was up 76% year-to-date headed into earnings. By the start of trading tomorrow shares could hit a double if buying continues.
Detailed Earnings Summary
CRDO | Credo Technology Group Q1’26 Earnings Highlights:
- Adj. EPS: $0.52 []; UP +1300% YoY
- Revenue: $223.1M []; UP +274% YoY
- Adj. Gross Margin: 67.6% []; UP +520 bps YoY
- Net Income: $63.4M []; UP +766% YoY
- Ending Cash and Short-term Investments: $479.6M
Q1’26 Outlook:
- Revenue: $230.0M – $240.0M [
]
- Management expects continued revenue growth driven by increasing market demand for reliable and power-efficient connectivity solutions.
- Growth is supported by deep, strategic partnerships with hyperscalers and key customers.
Q1 Segment Performance:
- Product Sales Revenue: $217.1M []; UP +279% YoY
- IP License Revenue: $6.0M []; UP +151% YoY
Other Key Q1 Metrics:
- Adj. Operating Income: $96.2M []; UP +4390% YoY
- Adj. Operating Expenses: $54.5M []; UP +54% YoY
- R&D Expenses: $52.4M []; UP +72% YoY
- Free Cash Flow: Not disclosed
- Effective Tax Rate: 2.0% (vs. 6.9% YoY)
CEO Commentary:
- Bill Brennan: “During the first quarter of fiscal 2026, Credo continued a strong growth trajectory. First quarter revenue increased 31% sequentially, and 274% year over year, to $223.1 million. The Company’s growth has been driven by deep, strategic partnerships with hyperscalers and key customers. Given increasing market demand for reliable and power-efficient connectivity solutions, we expect continued revenue growth and diversification in terms of customers, protocols and applications.”
Guidance Next Quarter
Credo expects revenue at the midpoint of $235 million next quarter.
Wall Street expected $199 million, so analyst estimates across Wall Street are about to zoom north.
Shares Now Up About 8%
Credo shares are now up about 8%. While this was a very impressive earnings from the company, the stock has been rallying headed into earnings which limits the size of the reaction to an outstanding report.
Monster Earnings Beat
EPS of $.52 smashes Wall Street expectations of $.36.
Revenue of $223 million smashes Wall Street expectations of $190.6 million.
Shares now up 10%.
Earnings Are Out
The stock initially pops 6%. We’ll continue posting analysis.
Credo Earnings Expected at 4:05
The moment their earnings hits newswires we’ll begin posting analysis.
Follow Our AI Investing Podcast
24/7 Wall St.’s AI Investor Podcast recommended Credo last September 27th. Since that call, the stock is up a remarkable 347%. On our next episode we’ll be covering Credo’s earnings. So make sure to subscribe to the AI Investor Podcast in your favorite podcasting app. We’ve dropped a link to our latest episode in Spotify below.
You can also watch this embedded clip of our first recommendation of Credo from last September from 24/7’s YouTube channel while you wait for earnings.
How Credo Performed After Recent Earnings
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q4 FY2025 | +27.88% | –2.45% | +1.12% | +5.08% |
| Q3 FY2025 | +36.53% | +6.19% | +3.94% | +7.12% |
| Q2 FY2025 | +34.62% | +2.82% | +3.56% | +4.04% |
| Q1 FY2025 | –2.20% | –4.66% | –5.48% | –6.29% |
Credo (NASDAQ: CRDO) has been one of the most explosive semiconductor names in the AI hardware space, and expectations for its Q1 FY2026 results reflect that. Analysts are calling for 801% EPS growth and over 200% revenue growth, led by demand for its high-speed connectivity solutions across hyperscaler and data center customers.
The stock is up 147% over the past 6 months and large account repeat orders, and product roadmap updates will determine whether Credo can support its premium multiple.
What to Expect When Credo Reports
| Metric | Q1 FY26 (Jul 2025) | Q2 FY26 (Oct 2025) | FY26 (CY2026) | FY27 (CY2027) |
|---|---|---|---|---|
| Revenue | $190.63M | $198.62M | $813.79M | $1.00B |
| EPS (Normalized) | $0.36 | $0.37 | $1.54 | $1.96 |
| YoY Revenue Growth | +219.2% | +175.7% | +86.3% | +23.2% |
| YoY EPS Growth | +801.4% | +435.1% | +120.6% | +26.7% |
Key Areas to Watch
1. Hyperscaler & AI Customer Demand
Credo’s primary growth engine is AI and hyperscaler infrastructure upgrades. Commentary on customer order trends and new product adoption will be key to justifying triple-digit growth.
2. Gross Margin Stability
Rapid revenue expansion can mask margin volatility. Watch for any shift in gross margin guidance or mix impact from specific large accounts.
3. Design Wins & Product Pipeline
Any updates on new design wins — particularly with tier-one cloud providers — would be viewed positively. Investors are tracking new transceiver and DSP adoption.
4. Competitive Landscape
Management flagged tailwinds from optical transition and faster Ethernet cycles. Watch for references to Broadcom, Marvell, or other key competitors.
5. FY26 Outlook Reinforcement
The Street expects FY26 revenue of $813.8M and EPS of $1.54. Affirmation or upward revision to this view would be a positive catalyst.
The post Live: Credo Smashes earnings and Shares Jump 8% appeared first on 24/7 Wall St..
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Author: Joel South
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